Boosting Mini-Hydro Power Plant (PLTM) Business Performance by Implementing Supply Chain Management and Business Partnership – Case Study: PLTM Business Unit in West Java

Iman Chaerudin, Ina Primiana, Martha Fani Cahyandito

Abstract

West Java topography condition is very potential for the development of hydro power plant technology
especially mini-hydro power (PLTM) and micro-hydro power (PLTMH) which is a runoff river power plant.
Unfortunately, until right now the business performance of PLTM and PLTMH is not optimal yet. It was allegedly
related to the supply chain management and business partnership aspect. This research aims to examine the
effect of supply chain management and business partnerships aspect towards business performance of West
Java PLTM business units. This research is a verificative research that use explanatory survey as method and with
cross section/one shot observation time. The unit of analysis is PLTM industry in West Java and the observation
unit is the company management itself. Target population is all of companies belonging to PLTM industry, which
contain of 33 PLTMs. The data collection is done by census with Partial Least Square (PLS) as the analytical
approach. The results showed that supply chain management and business partnership significantly influence
business performance on business units of PLTM in West Java. Business partnerships have a greater impact than
supply chain management in boosting business performance.

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